Ranking Ranking

Ranking - Definition and Overview

Related Words: Analysis, Appraisal, Appreciation, Arch, Arrangement, Ascendant, Assessment, Assortment, Authoritarian, Authorized, Autocratic, Banner, Capital, Cardinal, Categorization, Central, Champion, Chief, Classification


In relation to credit standing, the ranking of a security refers to where that particular security would stand in a wind up of the issuing company. For instance capital notes are subordinated securities meaning that they would rank behind senior debt in a wind up. In other words the holders of senior debt would be paid out before subordinated debt holders received any funds.

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